Why Block, Coinbase, and StoneCo Fell Today
Shares of fintech leaders Block (NYSE: SQ), Coinbase Global (NASDAQ: COIN), and StoneCo (NASDAQ: STNE) all fell on Wednesday, down 5.4%, 5.1%, and 1.8% respectively, as of 3:45 ET, as markets digested hawkish commentary from the Federal Reserve.
There wasn't any material news out of these stocks today. Sell-side research firm Piper Sandler did note that Block's cash app was the third-most used payment app among a survey of Gen Z users. However, given the declines, it was likely macroeconomic factors that affected its stock.
Each of these stocks is a high-growth fintech, and the fintech space is undergoing lots of turmoil at the moment. While each stock boomed during the coronavirus pandemic as consumers began to use more digital payments solutions, these stocks are getting hit not only on valuation concerns, with the prospect of rising interest rates, but also on a potential Fed-induced recession.
Source Fool.com
